Cramer said Apple is simply over-owned by investors who are still expecting the stock to grow by 30% to 40% a year. That's simply not going to happen, noted Cramer, which is why the stock continues to flounder.

So is a cheaper iPhone the answer? Cramer said a low-end phone certainly helps in China and in other emerging markets around the world, but it will not be the killer product that reignites Apple's stock price.

He said Apple is making more of an attempt to be all things to all people, so if another iPhone helps bring people into the Apple ecosystem, he's on board with the decision. Cramer currently owns Apple for his charitable trust, Action Alerts PLUS.

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